Honda Motor’s costly misfire on electric cars has dramatically increased the stakes for the company to avoid making the same mistakes with motorcycles.
Almost one out of every three motorcycles sold globally is a Honda, generating the majority of the manufacturer’s operating profit despite accounting for less than a fifth of sales. Even so, cracks are starting to appear as e-bikes from China encroach on its turf.
Though cars will undoubtedly be the focus of CEO Toshihiro Mibe’s turnaround plan in May, he will also face pressure to show investors he won’t squander Honda’s best-performing unit. How the company adapts to an electric future will be central to whether it can stabilize earnings and restore investor confidence.
